Common Deductions to a Personal Injury Recovery
As many people already know, law firms usually take personal injury cases on contingency. This means that the attorney pays all expenses associated with a case, and only receive a share of any recovery if they successfully prosecute a claim. However, attorneys are usually entitled to be reimbursed for the expenses that they advanced during the life of a case. Although there are a number of disbursements that are typically made during the course of a lawsuit, there are a few common deductions to a personal injury recovery that personal injury plaintiffs should keep in mind.
Court Fees
Filing fees and other expenses charged by the courts are one of the common deductions to a personal injury recovery. Courts usually charge fees to file a lawsuit, and although this amount varies, it is usually several hundred dollars. In addition, attorneys must also pay costs in order to serve court documents on parties interested in a case. Furthermore, courts usually require parties to spend money when they file a motion or ask for some other relief from a court. Moreover, courts also charge parties in many instances to seek a jury trial, file a stipulation of discontinuance, and take other types of judicial action. As a result, personal injury plaintiffs can expect that substantial deductions will be made from their recovery to cover the cost of court fees and filing costs.
Discovery Expenses
Another one of the common deductions to a personal injury recovery are discovery expenses. Discovery is the process of exchanging information between litigants so that each side has the ability to advance their claims and defenses in a case. Depositions are when people answer questions under oath, and they can be costly. Parties must typically pay court reporter fees for each deposition, and may be required to rent space if they do not have adequate space to hold a deposition in their office.
Furthermore, documents are also exchanged during the discovery process. Medical providers are usually allowed to charge to release their records, and this can be a significant sum. In addition, more and more parties request electronic records, such as emails and the like, and it can cost a significant sum to hire experts to content with electronic discovery. All of these expenses are usually deducted from a personal injury recovery.
Liens
Attorneys may be required to withhold money from a recovery to pay for various liens, and this is another one of the common deductions to a personal injury recovery. Medicare, Medicaid, worker’s compensation funds, and other types of payment sources may have a lien on a personal injury recovery. These liens must typically be paid out from a client’s share of any recovery, but an attorney may need to withhold money for liens and pay them off directly to ensure they are completely satisfied. Depending on the nature of the medical treatment undergone by a personal injury plaintiff, liens can be substantial and can eat up a large percentage of a personal injury recovery.
Expert Costs
Expert fees are another one of the common deductions to a personal injury recovery. A variety of different experts are often needed in a personal injury lawsuit. Some experts are required to establish liability in situations in which it may be difficult to show that a party was negligent. In addition, experts are often needed to demonstrate the amount of damages that were sustained by a party.
There are often a few different types of expert fees during the life of a case. Experts often charge a fee to investigate a matter and write a report. Such reports may be important when filing motions and proving matters in a lawsuit. Also, if an expert needs to be deposed during litigation, they may also charge deposition fees. Furthermore, experts also charge fees if they need to testify in court during pre-trial matters or the trial of a case itself. These expert fees can add up to thousands of dollars, but it may be important to invest in experts in order to ensure a case has the greatest probability of success.
Attorneys’ Fees
It goes without saying that attorneys’ fees are the biggest cost among the common deductions to a personal injury recovery. Most attorneys take personal injury matters on contingency, which means that they only receive payment if they are successful on a claim. In these cases, attorneys also agree to advance the costs of prosecuting a claim. Before a client gets paid after a case is resolve, the attorneys’ fee must be calculated. The amount an attorney collects is typically between 33 percent to 40 percent of the gross or net recovery, and some states cap the amount of fees that can be collected on contingency. Attorneys are usually required to provide the client with a closing statement listing the amount of the attorneys’ fee in a contingency case and noting which litigation expenses will be deducted from a client’s recovery.
The Rothman Law Firm is experienced with all types of personal injury matters. We know how to keep the costs down while prosecuting a claim while ensuring that our clients have the greatest chance at being successful in their claim. This allows us to attempt to acquire the largest recovery possible for our clients. If you are looking for a New York and New Jersey personal injury attorney to handle your claim, please feel free to contact The Rothman Law Firm to request a free consultation.